Apple faces lawsuit over $1.8 million Bitcoin theft linked to fake App Store wallet
Three users have sued Apple, alleging the company failed to properly vet apps listed on the App Store. According to the complaint, a fraudulent version of Sparrow Wallet enabled scammers to steal more than $1.8 million worth of Bitcoin.
The lawsuit was filed in the U.S. District Court for the Northern District of California. According to the filing, the plaintiffs trusted the App Store as a safe platform because Apple has consistently promoted it as a secure marketplace for downloading applications.
After installing the fake app, the victims entered their seed phrases, allowing the attackers to gain full control of their crypto wallets and transfer the funds to addresses under their control.
Users accuse Apple of inadequate App Store review
According to the complaint, James Ramirez, Christopher Ellis, and Jaylen Delgado lost approximately $875,000, $840,000, and $120,000, respectively. The thefts occurred between May and August 2025.
Sparrow Wallet developer Craig Raw had repeatedly warned users about fake versions of the application appearing on the App Store. The legitimate Sparrow Wallet is available only for Windows, macOS, and Linux and has never been released for the iPhone.
The plaintiffs also allege that Apple did not always respond promptly to reports of fraudulent apps and that some fake versions of Sparrow Wallet remained available on the App Store even after being reported.
The lawsuit seeks damages and reimbursement for all stolen funds.
Apple says fraudulent apps have been removed
In response to reports about the lawsuit, Apple said it had removed the applications impersonating Sparrow Wallet and terminated the developer accounts associated with them.
The company said intellectual property owners can report infringements through Apple's legal department, while users can flag fraudulent apps directly via the App Store. Apple added that any application found to violate the platform's policies is removed following review.
According to the company, Apple blocked 193,000 developer accounts linked to fraudulent activity in 2025 alone. It also said it prevented more than $2.2 billion in potentially fraudulent transactions during the year.Meanwhile, Apple shares remain near record highs ahead of the company's quarterly earnings report, one of the most closely watched events of the current earnings season. The stock continues to be supported by improving sentiment across equity markets and easing inflation concerns following the de-escalation of tensions between the United States and Iran.
Earlier, we reported that Apple shares extended their rally following WWDC 2026, where the company unveiled its updated artificial intelligence strategy.
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